wealthy british style sun. sometimes. markets why not. find out what's really happening to the global economy with mike's concert for a no holds barred look at the global financial headlines tune into khan's report on .

the international airport in the very heart of moscow. hi i'm max foster welcome to the kaiser report crash is the new black you've got your act crashes your gold crashes your crash crashes crash is the new thing it's the in thing stacy. crash so this season you should try some the first tweet from hacked a.p. twitter account causes dow to drop one hundred fifty points now we all know this was the a.p. tweeted out that the white house there were two explosions at the white house and obama was injured in fact it was a hacked a.p. twitter account. ant that sent this out and then they had life from that reads my

twitter hack to the complete evaporation of all market liquidity in one chart the chart here is from an x. and it shows the plunge the hundred fifty point plunge but you see no liquidity right well that's exactly right stacy herbert because these markets are essentially a hologram they're hologram that is concocted with algorithms that are injected into the protoplasm that is pseudo liquidity called new york stock exchange and all related contingencies markets tend gentle markets derivative markets and it's riding on the edge of an event horizon called probability of one hundred percent that this going to blow. there is no underlying liquidity people say derivatives and liquidity that's a false that people say market making as iterated by as defined by lloyd blankfein

or jamie dimon that's a lie these markets are nothing but a shadow of a shadow of a kind mera of a whole gram and they're going to blow and the other thing that c m b c noted here was that it's not so much that the computers initiated trades what happened is that they cancelled the orders so the bids came out of the market that caused the crash and you see went in that chart there was zero volume not single participants looked like genuinely one hundred percent of the market is by algorithms who are reading twitter where half of the tweets are fake anyway or hacked tweets well the volume is fake and i know from the technology i invented the virtual specialist technology that the shadow banking system that's run by wall street banks in the city of london banks you put into the system i call it the ghost trader that's how it's defined in the patent but they call it shadow banking system they just flood the

the market maker the guy the price discovery mechanism with ten twenty fifty one hundred two hundred times normal daily volume as a way to create a price that you want number goldman sachs' they pick a price they want and then they flood the market growing to get to that price that's how they manipulate these markets now when there is a rumor on twitter and suddenly the shadow banking system or the ghost traders i defined it back in the early ninety's is simply cancels that side of the transaction and you have the trap doors open and i used to do this all the time this is why. in hollywood we had i remember the discussion with disney for example they were trying to get me to get the price of their movies at a certain level as part of their propaganda techniques. but here on wall street you simply create prices that are part of an agenda but has nothing to do with free market capitalism it has nothing to do with price discovery it has nothing to do with economics this is stalin ism this this is this is stalin ism that's

traded every single day and it's called new york stock exchange well speaking of stalin is a let's move to the gold the headline from business insiders joe wiesenthal a paper bug as you call him the gold collapse is great news now he notes with great glee about how gleeful all the anti gold people were on twitter and it was like a pack of hyenas very happy when on april twelfth friday april twelfth the markets crashed the gold markets crashed and he said why is this good news well gold bugs are frequently jerks in this vindicates the economic ideas of the economic elites so he's saying that you know these economic elites are trying to take care of us and to respond to the economic crisis economists and mainstream policymakers have favored highly unusual policy measures massive fed balance sheet expensive massive stimulus except for these ideas are usually based on years of traditional economic

research keynesianism monetarism except and he's saying it was gold bugs that was ruining it for the likes of these monetarist and and all these experiments right joe wiesenthal over their business insider along with henry blodget they worship personalities whether it's bernanke here paul krugman they hate markets they hate price discovery they hate capitalism i noticed during this twitter crash flash crash gold price stayed rock solid because it hasn't trends of value where apple stock it could be seven under one day four hundred the next day there is no real intrinsic value of apple they've got a lot of cash on the balance sheet they have a few gadgets that people like but that could easily go to zero like enron go to zero world. congo's or j.p. morgan could easily go to zero whereas gold is never going to go to zero and perform beautifully during this controlled demolition by paper bugs like joe wiesenthal a stalinist paper book terrorist who need to be really constrained in some way

because it is his propaganda is destroying the american economy well it's a battle between where in the at a point where that system is falling apart so it makes sense that they're trying to justify everything and look for reason to continue to have hope and the gold price is it's not so much intrinsic value it's our subjective value we're viewing it with our human consciousness is saying well there's no counterparty risk there there's no risk of being defrauded by the way blankfein or jamie diamond they're not going to be able to take it unless they come into my yard and dig up it out of my backyard well they're only going to just jump on the first second because the average lifespan of a paper currency is less than fifty years going back hundreds of years every single paper currency has become extinct the average lifespan is less than fifty years during that time during that hundreds of years during those thousands of years nobody has ever turned down gold as money gold has always been money so to say

whether intrinsic value subjective or objective or to debate or it's a keynesian or it's this school or that school it's completely outside the main consideration here which is that paper money has always become worthless there's never been an exception gold has always been money that's never been an exception ok now turning back to this is joy at the crash of gold a mighty good it's all about perception and he doesn't even really recognise that he says so the collapse in gold is not about gold but about vindication for a large corpus of belief in economic research which was largely pat out it's great that our economic elites know what they're talking about and have the tools out there disposal to address crises without creating some new catastrophe what you know we will fulfill is to point out. is that while of his paper bug brethren or crashing the paper price of gold the price of physical gold and the demand for physical gold has never been higher and history the demand for physical gold has

never been higher history joe but of course he doesn't look at demand and supply that would be economics he looks at algorithms and the and the puffs of smoke that come out of the federal reserve system because he worships the pope of fraud ben bernanke because he's a stalinist. it is so let's look at some of what that means stream financial media was looking at those things those very days able twelth friday april twelfth monday april fifteenth let's see and here's joe wiesenthal mocking anybody who thinks that there could be anything unusual happening in the fall in the gold market i'm a gold slaughter of the thirteen hundred dollar and even twelve hundred dollars marks our lines in the sand it's a slaughter says karsten fritsch senior commodity analyst at commerce bank it all comes via the futures market on friday more than one thousand one hundred tons of paper gold have been traded that is more than annual gold demand from china or india i can't see a fundamental reason for this to be honest so here he is saying is a god looking at a mental reason he's never seen one thousand one hundred tons of paper gold don't

on the market at one time now put that into a comparison of the washington agreement where central banks which hold most of the physical gold in the world agree to offload some of their gold but five hundred tonnes a year over very carefully you know to not impact the price so here is in one day eleven hundred tonnes remember joe is a dangerous duplicitous ideologues just six months ago he was recommending that a creation of a magical one trillion dollar platinum coin yes if you look this up joe is a bubbly that you could create a magical one trillion dollar platinum coin to rectify america's deficit this is what joe lives you know we have bought some boxes in a very limited area of a few weird paper bugs in new york that he doesn't know in and around the world and countries elsewhere know joe wiesenthal from joe the weasel who is terrorizing our garden and the show however goes out to ns of millions of people

every single week and russia and india and china around the world in america they understand what i'm saying that keep buying gold to destroy joe ways and ball and the banks toure's. gold is now trading higher than the paper price the physical price that's all you need to know that the joe wiesenthal's and henry blodget in the ben bernanke is in a paul krugman are being destroyed thank goodness so then going back to this article from market watch where they're looking at the actual action happening live in the markets april twelfth friday april twelfth at sharpe's pic lee c.e.o. ross norman said three point four million ounces of gold or one hundred tonnes hit new york's mark on friday at the open that was only the start in a shock and awe campaign that had all the hallmarks of a concerted short sale now it's triggered a boeing stampede yet as we tell everyone in the world that it would end there happily buying gold and also miners. they're not making money at gold at these

levels so they're shutting down what's not going to do to the to the supply of gold i guess it reduces it the demand is high let's see high demand lower supply let's see joe can you figure out what would happen to the price of that case it's called supply and demand it's called economics you've been around spender bank because you can't figure that out you're too frickin stupid to figure out what a demand supply curve looks like quick what is quote krugman say i have to go to the top of the well what do i do do i why am i doing the wash my hands first know what i don't give you i'm just a stupid new york did. so roster without charts pixley said that there was a concerted short sell going on so we're going to look at what a concerted short sale how that could possibly be used to intentionally cause the price to go down joeys and all says that's a conspiracy theory and it's wacky now we're going to turn to a little clip from a film from c.b.c. in canada they did a documentary this week about the secret world of gold and in it there was

a scene with bart chilton c f t c executive where he is investigating gold and silver manipulation and this is how he explains that happens what we've seen all too often is where you have an individual trader who has excessive. concentration when i say excessive i mean concentration that can lead to pushing prices around and we've seen it in precious metals in silver in gold and in some of the other commodities so partial that a c.f.d. see regulator admits that there's concentrated positions of market manipulation but it can't be done about does he just waving his blonde hair and shaking us breast through the t.v. cameras and he's completely ineffectual as a regulator right now after the break in to be talking to enter mcguire about this and that but say she never thanks much being on the as a report thank you much but no i enjoy mcguire coming right up.

i. international airport in the very heart of moscow.

welcome back to the kaiser report imax keyser time now to turn to precious metals expert and was a blower andrew maguire andrew welcome to the kaiser report it's great to be here max nice to see you yes great to have you know andrew maguire you say that a gold default is under way as we speak and that this is the reason for the recent gold smash so first of all what i mean my goal default so people understand that means ok so basically what i'm saying is is that if you are a holder of bullion and you think you own that bullion and you just happened to turn up and ask for that bullion and you were told i'm sorry we don't have a. so we do take cash instead in fact you're going to take action said well technically that's the default now you know under the are now ok to l b m a system technically if you read through this more you can be selfish however that's not what most people think ok the f.b.i. may people have seen and others part of the recent losses that's been waged against

banks for manipulating the price of silver and what came out was that the l b m a is leveraged one hundred to one in some cases on their precious metal position so here's a here's an exchange that is even more leverage than enron was to hide its. before it collapsed before world com collapse there's one hundred to one leverage for every every dollar of physical they've got one hundred of paper and so when people go to take delivery of that gold and silver this there said no we have to get paper instead of number one number two there's a real threat that it could cause a run on the exchange and now this leads to the recent smash because people are demanding their precious metal and then this leads to the recent smash talk about it yeah that's exactly right i think what the straw that broke the camel's back was the cyprus issue now i had a love very large client come to me and say i'm get my physical so he went this is a this is part of the a.b.m. story so he went and this is before even the letter was sent out to all their

clients and he went and asked for his billion back i was told when i know it we're going to sell you for cash but hang on a minute you know this is my billion now you know reduce small print you don't actually a number of bob but you actually believe when they when you go and apply for a billion account with a bullion bank that's part of the all b.m.a. system you're told you've got two choices it's much cheaper to go this route it's not you don't actually get a number bob but essentially that's your gold otherwise you wouldn't buy the first place or go that our allocated route is going to cost you a lot more money you get a number you know why incur the cost right so people are not able to take delivery of their gold i was trading jim sinclair was talking about a client or friend of his who was having the same problem in switzerland so in switzerland they went to get his gold and they're saying wait a minute there's no gold here we're going to settle for a paper now let's talk about the paper gold market for a second because there's

a big paper gold vehicle g.l.d. it trades on the on the stock exchange but that's not real gold as it it's really paper gold and there was as part of the maneuvers to smash the price of course you have the futures market that gets massed with naked short sales and a lot of case but these. yes they're also smashed but if you buy an e.t.f. like g.l.d. you're not buying physical called are you well know you're ending up with shares in a claim on gold that's what you look at century there's only two things you either got something in your hand you can clunk or it's paper i don't trust the latter and obviously when we saw this recent short smash you notice that goldman sachs when they came out and issued the sell short note which was just before before the federal intervention came in they started by shorting the g.l.d. very interesting because you get a lot of leverage that way forces obviously. the redemptions force you know force the bullion to be to be purchased but it also if you think about it none of this

bullion in all of this smash not one ounce of that billion has turned up there is no physical for sale so you know where is it going well i suggest strongly that it's going to rip replace inventories that were not in the face all these inventories are all mismatched by duration and it's incurred itself over the years you've had basically or all the way back from that from the from the lease carry trade so you had bullion banks building up index positions never really needing to purchase the gold and all of a sudden you get someone like china like russia like central banks and sovereigns and other small investors saying look i tell you our m.f.g. didn't like what happened there re hypothecated gold no i think i better take delivery so now you've got the this enormous pressure on the bullion that was never anticipated in the first place so when they originally took your ten million

dollars from the pension pension fund they decided well let's not buy bullion let's give give you a receipt in our index of the price of gold obviously number one by not buying gold it didn't go up number two now you've got an incentive not for private price not to go the price. gold not to go up so obviously suddenly more than three or four people coming for their own so gold hundred to one is going to cause a problem right now andrew mccarthy you've been a pivotal figure in the really the the scandal really that is the gold market in silver market this is something that's been covered by the gold antitrust action committee for years people have been writing about and they've been on a really the margins and then as the price has gone higher and this outcry toward what appears to be a manipulation of the ground over the years and then you actually sat down the regulator and said look here's where the price is going to be manipulated the price is going to crash at this moment this is end you tell and you basically explained the manipulation before it was going to be manipulated it did exactly what you said

it was going to do the minute the regulator looked at that they said well that's interesting let's investigate they did an investigation where is that now right ok it's ongoing so then the smoking gun you showed a little bit if you look you know years we're going to happen there's a great video of it out there is it's going to crash right here because are manipulating it right this price you show them the slow being good the evidence so what happened exactly well we're still on going now the thing is is that and obviously you know there are things i really wish i could discuss but there is an active investigation going on it doesn't it covers more than one country and so obviously you know there's not a lot of comment i can make about but other than they would definitely given sufficient evidence to be able to to to to pursue that investigation for there is also new evidence coming in all the time what i will say is this recent documentary that came out as much as eighty and documented in

a documentary that came out was called we talked about in the first half of the show the. incredible secret willed of gold that's it. richard richard i mean obviously for people so close to the gold market they're a little disappointed there wasn't more about manipulation in there but generally speaking at least what it did was perhaps educate millions of people around the world on the history channel various countries my goal and if i've got any gold i won it so really you're actually educating people that those bankers can't be trusted and what about this idea of cognitive dissonance because we know for a fact now that the major banks the same billion banks who operate is nonviolent banks i mean they rate the library market are going they admit it they find a show that yes we do it we can. para pursue with rigging libel or if you're going to keep interest rates manipulated and currencies manipulated you would have to by definition also manipulate gold and silver because right otherwise because i manipulate live or then have gold and silver skyrocket well right what people fail

to remember when you people talk about gold and silver is going to these they are actually currencies and writing forget that they actually trade as a foreign exchange cross so when you go to own gold you are shorting the dollar so why is it so difficult for people to understand that gold the silver being manipulated just like live or it's just amazing to me it just absolutely staggers me ok let me ask you this then the markets as you've described and others are at a major inflection point because there's a run on gold and silver price matched by the paper carter has only increased demand. and as a result these features exchanges are being overwhelmed they can smash the price now every time they do smash the price the unintended consequence is they're increasing demand almost exponentially so the people in india russia china who are out there queuing up around the block to buy gold are they ultimately going to smash these bullion banks and the paper cartel is that is that the hope of the of

the world is in the hands of the people killing in bangkok to buy gold bullion to decimate his b.c. barclays and these these what i call financial paper terrorists is that how close are we now in europe thought and what we're seeing is obviously the visible side is the retail side you seeing and in say shit will demand people losing faith in currencies and buying physical whether it's crossing the line is into the wholesale market and i think that is the key it's the wholesale market that is now short in supply and that is that is what we run into very recently three weeks ago when a.b.m. roof issued that very first written default of an l.b.o. review that for the folks because this was a major turning point the just extract describe that briefly to give the. background there if you will will obviously i mentioned i had a client the go it went in there with his goal he was refused they must have been having a lot of other requests because a letter came out within

a day or two to all their clients saying they no longer could settle could receive their billion in cash well that is a major smoke signal billie's pick that up i mean that is a a crack in the dam then you converse the look over to the comix and see a ninety day reduction incredible reduction in inventories and you suddenly see there's a every reason in the world either one of two things going to happen the bullion banks have to buy back their gold which drives the price through the roof or you're going to have to default ok let's just take the example of blame banks default or call next defaults or l b m a the false will the central planners the central bankers the commercial banks while they step in and bail them out with more paper that's the question people obviously are they say well they can never default because they're tied at the hip to the central banks and they'll always just bail them out your thoughts all they're going to do and i'm sure max you've covered this before they're going to hit a keystroke they're going to print some money they're going to settle people in

cash the price will go up up you'll be subtle going in cash on the day before and the price will start to find its true level you will not be on board for all the years that you've been to you intended to hedge yourself you have lost that instantly right the people people buy physical gold against the inflation of the paper money supply so the fact that they're going to try to save the markets by increasing the money supply is not a reason not to buy gold it's the opposite it's a reason to buy gold now ben davies who is a friend of the show and he's a gold manager as well he made an excellent comment that gold will go to five thousand dollars an ounce but nobody will own it. you know i think you know because they're scaring people out of gold you know and then there's going to be a default as i understand ben's comments and then you'll see a gap opening to five thousand dollars an ounce but all if you don't know any at that point it's too late if you don't need only the physical that's the that's the key of course is you've got to own the physical anyone who's margy and to be honest i really have no sympathy for people who have a margin themselves if you're

a margin you've got to hate yourself but the point is is that yes he's right of course gold is going to find its true level we don't even know what that is it's been in the press for so many years but certainly one thing for sure you've got china russia as you mentioned these other countries now looking to back their own currencies with a reserve of old so that makes their currencies and i think the i.m.f. issued a statement that within three to five years trying to is going to be there was the world's reserve currency and require at a time thanks so much being on the kaiser report great to be here max all right that's going to do it for this edition of the kaiser report with me max kaiser and stacey herbert or thank my guest andrew mcguire if you'd like to send us an e-mail please do so at kaiser reported r t t v dot are you thought i was like. mission. critical three months for free. range month

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the government international at the very heart of moscow. southern europe braces itself for more on until saturday approaches as people direct that anger at the three international financial institutions accused of demanding khan's but off point of view visible solutions. the glass again increases the number of detainees it admits are in hunger strike

a gone ton about as the official figure edges closer to that claimed by lawyers since the beginning. and put in its trades the russian president holds his annual q. and a for the nation the economy and social issues are at the top of a long list of questions people want answers to.